[Editor's note] This is the 2021 "Taoxing China" National Tile and Bathroom Market Survey [Shenzhen Station] Issue 2: Impressions. Due to the tight time and heavy tasks of this investigation, more information, more data, more characters, more opinions, more analysis... We will write and publish articles one by one in the future. A special reminder here is that the market research activities being conducted at the same time are also [Fuzhou Station], so stay tuned!
"As a special economic zone, a first-tier city, and an international metropolis, Shenzhen's ceramic tile market is not as prosperous as outsiders think. It is the cruelest market, and it may also be the best market." A person who has been working in the Shenzhen ceramic tile market for two years A dealer with more than ten years of experience told a reporter from China Ceramics Network.
You must be curious, why do people selling ceramic tiles in Shenzhen express such emotions? The impression chapter of the 2021 "Tao Xing China" National Tile and Bathroom Market Survey [Shenzhen Station] will focus on the ceramic tile market phenomena and data in Shenzhen and analyze it from five aspects.
Tightening of property market controls
Second-hand housing transaction volume drops sharply
High housing prices seem to have become a business card of Shenzhen. Housing prices in Nanshan District range from hundreds of thousands to hundreds of thousands of yuan per square meter. There are also Luohu District and Futian District where the average price is close to 100,000 yuan per square meter, and Baoan District and Longhua District where the average price is between 60,000 and 70,000 yuan per square meter. Even the average house prices in Yantian District, Guangming District, Longgang, Pingshan District, and Dapeng New District are around 40,000 to 50,000 per square meter. In order to deepen the concept of "housing for living, not speculation", Shenzhen's property market control policies have been significantly tightened in the past two years. In July last year, the most stringent "Shenzhen Eight Regulations" in history were introduced, adjusting the purchase limit for commercial housing, improving differentiated housing credit measures, levying value-added tax on residences that have been completed for five years, and redefining the standards for ordinary houses and luxury homes; in February this year, Shenzhen established The reference price release mechanism for second-hand housing transactions has been established, and the heavy blow of property market regulation has struck again.
Since the beginning of this year, the second-hand housing market in Shenzhen has been extremely bleak, the housing market in school districts has cooled significantly, and some foreclosure houses have still failed to sell even at a 30% discount. In August, a total of 2,423 second-hand commercial housing units were transacted in Shenzhen, with a transaction area of 224,900 square meters; of which 1,979 second-hand commercial housing units were transacted, with a transaction area of 188,700 square meters. You know, the transaction volume of second-hand housing in Shenzhen in August of previous years was generally not too bad. 6000-7,000 sets is the normal level, and when the market is good, it even exceeds 11,000 sets. It can be said that it is extremely rare for the transaction volume to be less than 3,000 units. The last time the transaction volume was less than 3,000 units was in August 2011.
Although the second-hand housing market is "frozen", Shenzhen's new housing transactions are relatively active and have experienced a high growth rate. In August, 5,885 new housing units were sold in Shenzhen, with a transaction area of 636,000 square meters, an increase of 94.4% and 121.3% respectively from the previous month. The transaction volume hit a new high in the past seven months. The reporter learned from many sources that there are still a certain number of rough houses in these newly delivered properties, some of which are local relocation houses. Some ceramic tile dealers believe that under the double squeeze of the epidemic and property market regulation, those who choose to decorate during this period are customers with a certain financial strength, and everyone hopes to seize these few business opportunities.
The home building materials market is intensive
A true interpretation of how every inch of land is valuable
According to statistics, there are about 70 large-scale and mature home and building materials stores in Shenzhen, which covers an area of less than 2,000 square kilometers. From the perspective of regional distribution, Bao'an District has 12 markets such as Huameiju, Guoanju, and Le'anju; Longgang District has 16 markets such as Red Star Macalline and Jiadebao; Luohu District has Tianbei, Jiazhifu, etc. There are 8 markets. Guangming District has 4 markets including Century Vanguard and Wanzhongcheng. Longhua District has 4 markets including N Space and Guoanju. Futian District has 3 markets including Bagualing and Leanju. Nanshan District has Guoanju. There are 3 markets including Anju and Leanju, and there is 1 Donghai Decoration market in Yantian District. In addition to the building materials markets listed above, there are also material stores of various decoration companies and building materials circles with concentrated street stores.
Judging from the ceramic tile brands and product positioning, the most high-end market is Baoneng No. 1 Space, where 6 imported ceramic tile companies including Lamborghini, Roberto Cavalli, and Versace have settled in; the mid-to-high-end markets include Bagualing, Huameiju, Leanju, etc., among which Bagualing is the market with the most concentrated brand flagship stores; the mid-range market includes Century Vanguard, Jiazhifu, etc.; and there are wholesale low-end markets such as Xinfu. Overall, the number of ceramic tile brands in various markets has decreased in recent years. Markets with high concentration and close to 20-30 brands include Bagualing, Tianbei, Futian Leanju, Jiazhifu, and Baoan Huameiju. , Century Vanguard, etc., similar to "outside" markets such as Le'anju and Jiadebao in Longgang District, there are no more than 10 ceramic tile brands.
It is understood that the rental levels of most shopping malls in Shenzhen are much higher than those in other cities, among which the most high-endThe rent of the store has reached 350-400 yuan/㎡. The lowest rent is the Century Vanguard Shajing store (about 80-100 yuan/㎡), while the rent of most stores is about 200-300 yuan/㎡. Not only that, the practical area of most stores in Shenzhen is only 50-60%, so the display space of ceramic tile brands is basically less than 100 square meters, and small stores of dozens of square meters are very common. Speaking of store rents, let’s mention the warehousing rents in Shenzhen. The reporter inquired from several ceramic tile dealers and learned that ceramic tile warehouses in Shenzhen are gradually being relocated to Tangxia, Fenggang and other places. Currently, the warehouse with the highest rental cost costs 60-70 yuan/㎡, and the lowest rental cost exceeds 20 yuan/㎡. , a true interpretation of how every inch of land counts.
The concentration of head brands is not high
The channel structure is unique
Industry insiders revealed to reporters that the annual sales of the best-performing ceramic tile brands in Shenzhen are around 200 million yuan, and there are no more than five brands with annual sales exceeding 100 million yuan. Assuming that the annual throughput of the Shenzhen ceramic tile market is 2 billion, the market share of the TOP5 brands is not far less than one-third. It is worth mentioning that the Shenzhen ceramic tile market has not formed an absolute leading monopoly, and the gap between the TOP5 brands has not yet been significantly widened, so there is still room for further improvement in brand concentration.
In terms of channels, Shenzhen has an obvious feature: there are no brands with obvious "partiality" channels, and its two channels of home decoration retail and engineering centralized procurement show a phenomenon of co-prosperity and symbiosis. For example, there are brands with dozens of retail online stores in Shenzhen, such as Dongpeng, Marco Polo, Nobel, Mona Lisa, Eagle Brand, and Asia. These brands are also doing well in engineering channels. In addition to retail and engineering, the fast pace of urban life has also resulted in decoration companies and designer channels accounting for a very high proportion of sales in the Shenzhen ceramic tile market. Especially after the epidemic, affected by the sharp decline in natural door-to-door customers, decoration companies and designers have become the battlegrounds for brands to maintain market share. The high-end brands that are relatively mature in this field in Shenzhen include: Oceano, L&D , Bo De, Te Te, Jin Yitao, Jian Yi.
Shenzhen's decoration company channels have a unique phenomenon - half packages and full packages are "in harmony", and the demand for high-end and hard-to-find home decoration is equally strong. The reporter learned that at present, Shenzhen's semi-package companies such as Mingdiao and Juzhong are slowly developing full-case business, and package companies such as Sequoia Tree, Golden Bauhinia, and Haotian are gradually developing into high-end customized decoration, and Shangshi has even launched a Focusing on the positioning of high-end villa decoration, TubaInternet home decoration platforms such as Rabbit are also very active in Shenzhen. Let’s talk about designer channels. As a “design capital” and adjacent to Hong Kong, Shenzhen not only has a large group of designers, but also has many high-end design celebrities. According to incomplete statistics, there are about 10,000 designers in Shenzhen who have obtained industry qualifications. Most of the home decoration projects these designers are responsible for are concentrated in Shenzhen, while public decoration projects are spread across the country.
Rational and diversified home decoration consumption
The order value of rigid demand customers is generally low
“The quality of customers in Shenzhen is actually polarized. The unit value of high-end ceramic tiles can be very high, while the unit value of just-needed ceramic tiles is really low.” Basically, the ceramic tile dealers interviewed by China Ceramics Network all made this Feeling. The reporter learned that Shenzhen currently has the highest proportion of newly-required housing area of 89 square meters. The budget for these owners to purchase ceramic tiles when decorating is about 10,000 to 20,000 yuan. Those who choose large-size ceramic tiles will spend about 30,000 yuan. ceramic tile. Most shopping guides at ceramic tile stores believe: “An order of more than 30,000 yuan is considered a large order in Shenzhen.”
“Many people will think that the high housing prices in Shenzhen have caused consumers to spend less money on decoration. In fact, this is only one aspect; the main reason why consumers are unwilling to spend more on ceramic tiles is that most of them belong to the ' "The first generation lacks family-style wealth accumulation, so their consumption habits are more rational and budget-conscious." A ceramic tile dealer pointed out the reason why the single value of ceramic tiles in Shenzhen is generally low. Through visits to the market, the reporter found that young consumer groups in Shenzhen are very assertive when choosing home decoration styles. Modern, minimalist, Nordic, Japanese, new Chinese, wabi-sabi, etc. have formed a diversified selection of home decoration styles, 750×1500 ㎜, 900×1800㎜ and other specifications of ceramic tiles have also become mainstream. In other words, from the perspective of taste and consumption power, Shenzhen’s consumer groups are ahead of other cities.
How to get consumers to pay for ceramic tiles, most dealers believe that they should start from finding their own value. The popularity of big first-line brands is a value, the personalization and differentiation of products is also a value, and the improvement of team, marketing and other systems is also a value. A ceramic tile dealer said frankly in an interview: "The fierce competition has brought the Shenzhen ceramic tile market into a reshuffle period earlier. Coupled with the rich information sources leading to price transparency, no merchant can make money purely by selling materials. In the future, Must be transforming from a dealerAs a service provider, we rely on service premiums. ”
Tile dealer sells slate
What you see is what you get and finished product delivery
The “rock slab” craze that has been launched in the industry in the past two years has also surged in the first-tier market. It can be said that 9 out of 10 owners in Shenzhen who have decoration needs will take slate into consideration when purchasing background walls. . "Stone slab products will definitely become a trend. Decorative design organizations and associations are promoting this product. At present, we plan to renovate the store after enriching the product series of slabs at the headquarters and display slabs on a large area." Eagle Ceramics Shenzhen Distributor Ye Chengfeng expressed optimism about the development prospects of slate in the Shenzhen market.
Due to high transportation costs and paving and flooring costs, the application of slate in home decoration is still limited to background walls. Only some consumers will use slate on the floor and bathroom, and the demand needs to be further released. Qin Yongxue, a dealer of Nengqiang Ceramics in Baoan, Shenzhen, believes that slate products need to be displayed more than ceramic tiles. If they are placed in the store as a sample, consumers cannot see the effect intuitively. Therefore, the slate background wall display in the Shenzhen Century Wanjia store of Nengqiang Ceramics is a floor-to-ceiling display where the slate is processed and installed and matched with grilles, base cabinets, and light strips, so that consumers can truly enjoy what they see is what they get.
As we all know, the implementation of rock slabs also involves complex processing and construction processes. Most ceramic tile dealers do not provide processing and construction services. When looking for external processing plants and construction teams, they face the problem of who will bear the risks. This is also one of the reasons why consumers are concerned. It is understood that businesses in Shenzhen that have the ability to deliver integrated finished products of slate design + processing + construction include Huiquan Mercure (agent for Oceano, L&D, Bode), Kangda Meishuo (agent for Nobel) and Melco Marble Tiles. With its strong delivery capabilities, it has successfully opened the door to whole-house customization of slate slabs.
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After reading this article, do you think the opportunities outweigh the challenges in the Shenzhen ceramic tile market, or do the challenges outweigh the opportunities?
(Author: Hong Xiaochun)
